Karachi Stock Exchange Weekly Analysis 29 June, 2015

The Karachi Stock Exchange (KSE) market turned bearish with the onset of future roll-over week. KSE-100 index closed on 3 3,885 3 4,527 by losing -642 points or -1.86% while KSE-30 index closed on 21,206 21,658 by losing -452 points or -2.09%. Volumes are anticipated to remain subdued as Ramadan effect continues to keep the index range bound.

According to experts of http://www.karachistockexchange.org, following news have played vital role in Karachi Stock Market index movement:

  • The National Assembly has approved the Finance Bill’16
  • World Bank approving release of US$500mn to Pakistan on completion of development policy credits (DPC‐2)
  • Outstanding dues of gas utilities against Independent Power Plants (IPPs) reaching PkR120bn
  • Oil and Gas sector posted steep correction during the week owing to subdued international oil price with the sector declining by 5.9% (308 points). OGDC led the charge, contributing a total 180 points to index decline followed by PPL (63 points)
  • Govt to raise gas prices from July 1
  • Chemical sector continued with its bearish trend owing to possible gas tariff hike from 1st July which is expected to negatively affect earnings of the sector. FFC and ENGRO fell by 4.15% and 5.24% respectively during the week
  • Foreigners remained net sellers during the first four days of week selling 10.60mn worth of shares
  • Textile exports decline by 2.85% in May
  • The State Bank of Pakistan (SBP) on Tuesday issued guidelines for opening Asaan accounts with simplified due diligence and minimum of PKR100 initial deposit to enhance the outreach of financial services across the country
  • The political temperature was close to the temperature seen in Karachi in the outgoing week
  • The public offering of 25% units of Dolmen City REIT has been undersubscribed by 48.5%, a bourse filing. At least 71.528mn units of Dolmen City REIT have been subscribed against the offered 138.981mn units for the general public in the last week

Top gainers of last week were: Arif Habib Corp, Nishat Chunian, Lafarge Pakistan, Sui South Gas, Bata (Pak) Ltd., Jah.Sidd. Co., Service Indus, Indus Dyeing, Askari Bank Ltd. and Allied Rental Mod.
Top losers of last week were: Pak Tobacco Co., Oil and Gas Deve, K‐Electric, National Foods, Rafhan Maize Prod., Engro Foods Ltd, Kohinoor Textile, EFU General Ins, P.T.C.L.A and Engro Corp.

Top ten volume leaders: KEL, PAEL, TRG, JSCL, SNGP, FFBL, LPCL, FCCL, PTC, PIBTL, and HUMNL.

Following are few BUY recommendations:

Fauji Fert. Bin Qasim Ltd. (FFBL) – BUY
Current Price: PKR 54.8
Target Price: PKR 62.4

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 38.1
Target Price: PKR 50.7

Engro Fertilizers Limited (EFERT) – BUY
Current Price: PKR 87.58 
Target Price: PKR 103.2

Engro Corporation (ENGRO) – BUY
Current Price: PKR 290.77
Target Price: PKR 338

Engro Foords (EFOODS) – BUY
Current Price: PKR 142.5
Target Price: PKR 177.8

Pak Suzuki Motors (PSMC) – BUY
Current Price: PKR 437.5
Target Price: PKR 552.00

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 178.2
Target Price: PKR 238.2 

Pak Oilfields (POL) – BUY
Current Price: PKR 393.9
Target Price: PKR 442.00

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 163.24
Target Price: PKR 221.00

Pakistan State Oil (PSO) – BUY
Current Price: PKR 382.6
Target Price: PKR 493

Attock Petroleum (APL) – BUY
Current Price: PKR 557.8
Target Price: PKR 706

Current Price: PKR 111.8
Target Price: PKR 135

MARI Petroleum (MARI) – BUY
Current Price: PKR 462
Target Price: PKR 625

Lucky Cement (LUCK) – BUY
Current Price: PKR 507.67
Target Price: PKR 552.00

DG Khan Cement (DGKC) – BUY
Current Price: PKR 138.62
Target Price: PKR 162

K-Electric Co. (KEL) – BUY 
Current Price: PKR 8.1
Target Price: PKR 13.3

Pakistan Telecommunication (PTC) – BUY 
Current Price: PKR 20.0
Target Price: PKR 25.1

Nishat Mills (NML) – BUY
Current Price: PKR 113.9
Target Price: PKR 168.5 

Nishat Chunian Ltd. (NCL) – BUY 
Current Price: PKR 36.8
Target Price: PKR 45.7

Allied Bank Limited (ABL) – BUY
Current Price: PKR 99.5
Target Price: PKR 140.0 

MCB Bank Ltd (MCB) – BUY
Current Price: PKR 239.4
Target Price: PKR 320

National Bank (NBP) – BUY
Current Price: PKR 52.5
Target Price: PKR 69.0

Habib Bank Limited (HBL) – BUY
Current Price: PKR 207.00
Target Price: PKR 270

United Bank Ltd (UBL) – BUY
Current Price: PKR 172.15
Target Price: PKR 194.00

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 24.36
Target Price: PKR 34

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 42.75
Target Price: PKR 68

Following are few SELL recommendations:

Hub Power Co (HUBCO) – SELL
Current Price: PKR 93.49
Target Price: PKR 71.00

Nishat Power Ltd (NPL) – SELL
Current Price: PKR 59.50   
Target Price: PKR 38.00

Nishat Chun Power (NCPL) – SELL
Current Price: PKR 59.88
Target Price: PKR 43 

Pakgen Power Ltd (PKGP) – SELL
Current Price: PKR 29.28
Target Price: PKR 24

Indus Motor (INDU) – SELL
Current Price: PKR 1248.79
Target Price: PKR 1023.00

Thank you very much for reading this article.

NOTE: The information posted in this blog /forum (http://www.karachistockexchange.org/) is based on current affairs & investors point of view. There may be discrepancy in the ground realities.

Written by: Rana Khurram

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